I see in todays Financial review page 47 that the Beville group...

I see in todays Financial review page 47 that the Beville group is selling 50% of the retail and potentially the residential componant of their Top Ryde project. This is a highly desirable asset for many insto's. I think it will sell well.

Valad have an investment in this project through VCS. This is the largest investment VCS held. If my memory is right I belive thhey have exposure of about $80 - 90M in this project.

I belive Valad wrote down their investment in VCS to zero. With a potential sale of this project on the horizon this may well return Valad part if not all of their investment and in that event all of it goes straight to the profit line.

Valad have a priority lending position. Meaning that they need to be dealt with (ie - paid out) before the Beville family get's their own equity back. Valad are well placed to extract considerable value fromt he sale of this asset.

Even 50% return of the investment means $40 - $45M profit in the next reporting season. It gets very interesting if you consider the posibility they may get more than 50% of their $80M investment back.

GLTA